Shura debates MoL regulations’ impact on employment, investment

MUSCAT: The Majlis Ash’shura hosted Dr Mahad bin Said Baowain, Minister of Labour, on Wednesday to discuss Ministerial Decision No 602/2025 on the regulation of work permits and licences, including amendments under Decision No 44/2026. The session was chaired by Shaikh Said bin Hamad al Saadi, Deputy Chairman of Majlis Ash’shura.
The minister outlined the decision's objectives in a visual presentation, saying it aims to develop the regulatory framework of the labour market, strengthen private sector compliance with national employment policies, and balance economic development with labour market sustainability.
The decision is designed to meet national employment targets, correct the status of private sector establishments, and enhance their role in creating job opportunities for Omani nationals, the minister said, noting that companies have been given a grace period to comply.
The ministry launched a comprehensive media campaign to raise awareness of the regulation's provisions and their positive impact, targeting employers, investors, foreign workers and recruitment agencies, the minister added.
Preliminary indicators show an increase in compliant establishments and continued entry of new businesses into the labour market, he said, while reviewing the ministry's responses to the Youth and Human Resources Committee's queries on the decision's legislative background and implementation impact.
Council members raised concerns about the decision's economic and social impact, particularly on self‑employment and small and medium enterprises, and questioned whether fees and penalties for failing to meet Omanisation rates take into account the realities of smaller businesses.
They also questioned the rationale for regulating the recruitment of certain nationalities and the implications for operating costs, stressing the need for policies that support the private sector, reduce production costs, and ensure the sustainability of SMEs as a cornerstone of the economy.
Discussions also covered the regulation's role in addressing labour market imbalances and irregular practices, its impact on job-seekers, business costs, prices, and foreign worker recruitment controls, as well as the capacity of SMEs to absorb the requirements and how revenues will be channelled to support national employment programmes.
The debate also emphasised the need to balance labour market regulation with economic sustainability, align sectoral needs with national employment targets, and evaluate the effectiveness of Omanisation‑linked incentives and penalties, alongside the regulation's impact on competitiveness and investment attractiveness. — ONA